Market transition and regional adjustments in the Polish coal industry

Suwała, Wojciech; Labys, Walter C.

doi:10.1016/s0140-9883(02)00002-6

Cited by 14 publications

(5 citation statements)

References 5 publications

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“…However, if in the presence of competition, a manager were to make a capacity decision as if she were a monopolist, she would over-invest in capacity. Recently, for example, the Polish coal industry had to downsize its capacity and undergo a major restructuring (including an evaluation of all existing mine locations) to transition to a competitive environment (Suwala and Labys, 2002). On the other hand, competition can lead to higher than expected investments in capacity when its strategic value is considered.…”

Section: Discussionmentioning

confidence: 99%

Competitive location and capacity decisions for firms serving time‐sensitive customers

Kwasnica

Stavrulaki

2008

Naval Research Logistics

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In this paper we explore how two competing firms locate and set capacities to serve timesensitive customers. Because customers are time-sensitive, they may decline to place an order from either competitor if their expected waiting time is large. We develop a two-stage game where firms set capacities and then locations, and show that three types of subgame perfect equilibria are possible: local monopoly (in which each customer is served by a single firm, but some customers may be left unserved), constrained local monopoly (in which firms serve the entire interval of customers but do not compete with each other), and constrained competition (in which firms also serve the entire interval of customers, but now compete for some customers). We perform a comparative statics analysis to illustrate differences in the equilibrium behavior of a duopolist and a coordinated monopolist.

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Section: Discussionmentioning

confidence: 99%

Competitive location and capacity decisions for firms serving time‐sensitive customers

Kwasnica

Stavrulaki

2008

Naval Research Logistics

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“…Additionally, a preparation of new energy strategy, due in 2018, also requires a long-term energy demand modelling for Poland covering a number of scenarios with a different share of coal. Various scenarios have been for long discussed in extensive literature (Suwała and Labys 2002 ; Suwała 2008 ; Kamiński and Kudełko 2010 ; Kamiński 2009 ; Kamiński 2011 ). These scenarios, most of them accomplished a few years ago, assumed the never taken strategic decisions, e.g.…”

Section: Long-term Power Sector Decarbonisationmentioning

confidence: 99%

Impact assessment of climate policy on Poland's power sector

Skoczkowski

Bielecki

Węglarz

et al. 2018

Mitig Adapt Strateg Glob Change

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This article addresses the impact of the European Union Emissions Trading System (EU ETS) on Poland’s conventional energy sector in 2008–2020 and further till 2050. Poland is a country with over 80% dependence on coal in the power sector being under political pressure of the European Union’s (EU) ambitious climate policy. The impact of the increase of the European Emission Allowance (EUA) price on fossil fuel power sector has been modelled for different scenarios. The innovation of this article consists in proposing a methodology of estimation actual costs and benefits of power stations in a country with a heavily coal-dependent power sector in the process of transition to a low-carbon economy. Strong political and economic interdependence of coal and power sector has been demonstrated as well as the impact caused by the EU ETS participation in different technology groups of power plants. It has been shown that gas-fuelled combined heat and power units are less vulnerable to the EU ETS-related costs, whereas the hard coal-fired plants may lose their profitability soon after 2020. Lignite power plants, despite their high emissivity, may longer remain in operation owing to low operational costs. Additionally, the results of long-term, up to 2050, modelling of Poland’s energy sector supported an unavoidable need of deep decarbonisation of the power sector to meet the post-Paris climate objectives. It has been concluded that investing in coal-based power capacity may lead to a carbon lock-in of the power sector. Finally, the overall costs of such a transformation have been discussed and confronted with the financial support offered by the EU. The whole consideration has been made in a wide context of changes ongoing globally in energy markets and compared with some other countries seeking transformation paths from coal. Poland’s case can serve as a lesson for all countries trying to reduce coal dependence in power generation. Reforms in the energy sector shall from the very beginning be an essential part of a sustainable transition of the whole nation’s economy. They must scale the power capacity to the future demand avoiding stranded costs. The reforms must be wide-ranging, based on a wide political consensus and not biased against the coal sector. Future energy mix and corresponding technologies shall be carefully designed, matched and should remain stable in the long-term perspective. Coal-based power capacity being near the end of its lifetime provides an economically viable option to commence a fuel switch and the following technology replacement. Real benefits and costs of the energy transition shall be fairly allocated to all stakeholders and communicated to the society. The social costs and implications in coal-dependent regions may be high, especially in the short-term perspective, but then the transformation will bring profits to the whole society.

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“…Source: Author's work based on Karbownik and Turek (2011) the above-mentioned mining enterprises. In 2003, re-consolidation was undertaken once again by joining five existing enterprises and establishing the largest coal producer in Europe, Kompania Węglowa SA (Suwala and Labys, 2002;Hayo, 2004). Many changes inside the organizational structures of existing mining enterprises were made from 2003-2014.…”

Section: Research Questionsmentioning

confidence: 99%

Challenges for long-term industry restructuring in the Upper Silesian Coal Basin: What has Polish coal mining achieved and failed from a twenty-year perspective?

Jonek-Kowalska

2015

Resources Policy

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Market transition and regional adjustments in the Polish coal industry

Cited by 14 publications

References 5 publications

Competitive location and capacity decisions for firms serving time‐sensitive customers

Competitive location and capacity decisions for firms serving time‐sensitive customers

Impact assessment of climate policy on Poland's power sector

Challenges for long-term industry restructuring in the Upper Silesian Coal Basin: What has Polish coal mining achieved and failed from a twenty-year perspective?

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